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SCA Considers Closure

Stockholm, Sweden 21 September 2012 -- Due to an overcapacity in recycled fibre-based tissue SCA wants to shut down production capacity in Sweden.

SCA is considering the closure of it Jönköping tissue mill in Sweden. According to a company spokesman, employee consultations have been initiated recently. SCA has an overcapacity of tissue mother reels in Sweden and intends to match this capacity with its converting capacity.

As the negotiations with employee representatives had just begun, SCA did not want to comment on a timeframe for the possible closure of the mill. As yet, the outcome of the consultation process was still open, the spokesman said. If the mill was shut down, 42 employees would be affected. The Jönköping mill has an annual capacity of 21,000 t of recycled fibre-based mother reels.

According to SCA, the possible closure of the Jönköping mill is not connected with the project to raise the output of the Swedish Lilla Edet mill. In January 2012, SCA had confirmed that it has applied for environmental permits to raise the Lilla Edet mill’s output from 100,000 tpy recycled fibre-based tissue to 150,000 tpy by optimising the production process. Now, the company explained that it had applied for those environmental permits but it had not yet taken a final investment decision. Therefore, the closure of Jönköping was not to offset higher output in Lilla Edet.


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